Budget 2023 Analysis Highlights: This has been a pragmatic budget which, on one hand, strikes a delicate balance by focusing on inclusive development, supporting small businesses, boosting income for the middle class, reducing compliances and promoting entrepreneurship.
Budget 2023 Analysis Live Updates: Union Budget to benefit Jharkhand tribals: Jitendra Singh
-- Tribals in Jharkhand will benefit from Union Budget 2023, Union Minister Jitendra Singh said.
-- Over 38,000 teachers will be recruited for Eklavya Schools for tribal students.
-- Jharkhand tribals will also benefit from a scheme for Particularly Vulnerable Tribal Groups (PVTG).
-- Ekalavya Model Residential Schools will benefit 3.5 lakh tribal students.
-- Outlay of Rs 15,000 crore to develop basic amenities such as housing, clean drinking water and sanitation will help PVTG families.
Budget 2023 Analysis Live Updates: Incentives for fisheries, marine products
-- Sub-scheme of PMMatsyaSampadaYojanawill be launched with a targeted investment of Rs 6,000 crore
-- Move to help fishermen, fish vendors, and micro and small enterprises, improve value-chain efficiencies, and expand the market.
-- Duty reduction on key inputs for shrimp feed also announced
Budget 2023 Analysis Live Updates: Rs 2,000 crore earmarked for National Research Foundation
-- Rs 2,000 crore has been allocated for the proposed National Research Foundation in the Union Budget 2023.
-- The new funding agency is expected to bolster India's research competence.
-- Union Cabinet is expected to approve the proposal of setting up the NRF very soon, a DST official said.
-- The Ministry of Science and Technology got an allocation of Rs 16,361.42 crore in Budget 2023; the Department of Science and Technology (DST) got Rs 7,931.05 crore
Budget 2023 Analysis Live Updates: Budget 2023 has pragmatic growth agenda for ‘Amrit Kaal’
Union Budget 2023 has been presented in the backdrop of a strong recovery in the Indian economy post-covid, recessionary headwinds for major global economies in 2023, and a turbulent global geopolitical environment.
Finance Minister Nirmala Sitharaman focused on reinvigorating economic growth with a long-term sustainable approach while avoiding giving in to short-term impulses despite this being the PM Modi government’s last full Budget before the 2024 Lok Sabha elections.
Budget 2023 Analysis Live Updates: Meagre provisions for marginalised
-- Only one percent rise in allocation for the sector; disabled community continues to be neglected, said National Platform for the Rights of the Disabled (NPRD).
-- Allocations for the scheme for implementation of the (Rights of) Persons with Disabilities Act reduced by Rs 90 crore to Rs 150 crore.
-- Government removed income criteria in PM-JAY for persons with disabilities.
-- Allocations for Indira Gandhi National Disability Pension Scheme not increased.
Budget 2023 Analysis Live Updates: IRFC's market borrowing in 2023-24 to be nil
According to Budget documents, the market borrowing arm of Indian Railways, Indian Railway Finance Corporation (IRFC) will not borrow any money in the form of debt in financial year 2023-24.
The government has listed IRFC's Internal and Extra-Budgetary Resources (IEBR) as negligible in 2023-24, indicating it will not look to borrow money to fund its capital expenditure.
Budget 2023 Analysis Live Updates: Why there was green hydrogen push in Budget 2023
-- Budget 2023 allocated Rs 35,000 crore in priority capital investment towards energy transition
-- Additional Rs 19,700 crore was sanctioned for National Green Hydrogen Mission
-- This will help increase India’s annual green hydrogen production to 5 million tonnes by 2030
-- It will also reduce dependence on fossil fuel imports
-- Greenhouse gas emissions will reduce by nearly 50 million tonnes
Budget 2023 Analysis Live Updates: Stepping up capex in Budget will boost logistics, connectivity across country
- The International Road Federation (IRF) has welcomed the increased allocation of Rs 10 lakh crore as capital expenditure in Union Budget, saying it will help boost logistics and connectivity across the nation.
- IRF in a statement also welcomed the thrust of the Budget on seven growth engines of PM GatiShakti, including roads, railways, airports, ports, mass transport, waterways and logistics.
- It said the increased allocation will ensure time-bound creation of world-class transport infrastructure and improve logistics and connectivity across the nation.
Budget 2023 Analysis Live Updates: Growth-oriented provisions
- Sustainable planning and energy transition
- Inclusive growth through a tech-enabled economy
- Impetus to the EV sector
- Exempting Lithium-ion cells from paying custom duty
Budget 2023 Analysis Live Updates: Tax tweak in life insurance
- Budget 2023 tweaks tax exemption on life insurance policies.
- Tweaks are likely to have a bigger impact on the topline products compared to the bottomline products, if nothing is done to mitigate the change, HDFC Life CMD said.
Budget 2023 Analysis Live Updates: Sustained focus on infra will push steel demand
- Capex increased for infrastructure development to Rs 10 lakh crore in 2023 Budget along with capital outlay of Rs 2 lakh crore for modernising, expanding Railways.
- Infrastructure, building and construction sectors together account for nearly 60 percent of end-use steel consumption share in domestic market. So, sustained focus on infra projects will ensure sustained long-term growth in steel demand too, said CareEdge Ratings. It will help both alloy and non-alloy steel producers.
- Further, exempting ferrous scrap from basic customs duty and on raw materials for manufacturing CRGO steel will also augment availability of raw materials to the steel sector and save their cost of production.
- Expansion in railway network will result in increased steel usage.
Budget 2023 Analysis Live: Marine sector
- FM Nirmala Sitharaman said a sub-scheme of the PM Matsya Sampada Yojana will be launched with a targeted investment of Rs 6,000 crore to further enable activities of fishermen, fish vendors, and micro enterprises, improve value-chain efficiencies, and expand the market.
- The government had fixed a target of $8.6 billion for marine products in the current year.
- According to industry sources, the feed cost accounts for around 50 percent of the total cost of production.
Budget 2023 Analysis Live Updates: Big tax changes for middle-class
-Salaried class with income up to Rs 7 lakhs under new tax regime (NTR) exempted through tax rebate from erstwhile threshold of Rs 5 lakhs, leading to tax saving of Rs 33,800.
- Basic exemption limit increased from Rs 2.50 lakh to Rs 3 lakh.
- Proposed change in tax slab rate and standard deduction under NTR would lead to tax saving of Rs 54,600 for salaried persons having income of Rs 15.5 lakh.
- Tax exemption limit on leave encashment for non-government employees increased from Rs 3 lakh to Rs 5 lakh
Budget 2023 Analysis Live: Real Estate sector
- FM recognizes the need to increase investment for the growth of affordable housing in the country.
- FM announced that the outlay for the PM Awas Yojana has been enhanced by 66 percent to over Rs. 79,000 crore, which is a welcome move given the significant backward and forward linkages real estate and construction in particular have with the rest of the economy.
- Capital gains exemption available to individuals and HUFs on transfer of residential assets or any other long-term capital assets has now been capped at Rs. 10 crore.
- This may adversely impact recycling of high-value assets.
Budget 2023 analysis: Duty hike on cigarettes to have nominal impact on prices
- The 16 percent duty hike on cigarettes would increase prices of cigarette sticks by around 7–12 paise per stick
- The upward revision in the National Calamity Contingent Duty would hardly have any impact on smokers or companies selling cigarettes, say experts.
Budget 2023 Analysis Live: RBI rate hike
- The budget proposals are likely to help stop the interest rate hikes by the Reserve Bank of India that have been raising your EMIs since last year.
- Finance Minister Nirmala Sitharaman met her deficit target for the current fiscal year and announced a lower target for the next year.
Budget 2023 analysis: Budget had no surprises, but took dramatic bet on Capex
- The Union Budget 2023 did not have any “surprises”, but took a dramatic bet on capex, while continuing the path of fiscal consolidation, said NITI Aayog vice chairman Suman Bery.
Budget 2023 Analysis Live: Automobile sector
- As per the Budget document released on February 1, the subsidy outlay under the FAME scheme for fiscal 2023-24 is earmarked at Rs 5,172 crore, accounting for 85% of the total Budget allocation of Rs 6,145 crore for the Ministry of Heavy Industries.
- However, the Society of Manufacturers of Electric Vehicles (SMEV), believes that subsidies offered in this year's Budget is unlikely to make a huge difference to the EV industry as the allocated amount for FY24 doesn’t add any incremental value to the overall outlay made by the government when the FAME 2 subsidy was announced for a five-year period ending in FY24.
Budget 2023 Analysis Live: A balanced budget
- The budget recognises and acknowledges the emergence of the Indian economy as an oasis in the economically challenged global economic environment and the world is looking upon India to step up its role as the fastest-growing major economy.
- The government has laid major emphasis on significantly accelerating capital expenditure as the cornerstone for driving growth.
- Apart from railways, allocations have increased across sectors such as defence, rural housing, other transportation (roads & ports) and urban infrastructure.
Budget 2023 Analysis Live: Marine sector
- FM Nirmala Sitharaman said a sub-scheme of the PM Matsya Sampada Yojana will be launched with a targeted investment of Rs 6,000 crore to further enable activities of fishermen, fish vendors, and micro enterprises, improve value-chain efficiencies, and expand the market.
- The government had fixed a target of $8.6 billion for marine products in the current year.
- According to industry sources, the feed cost accounts for around 50 percent of the total cost of production.
Budget 2023 Analysis Live: A balanced budget
- The focus of the budget has been to improve the physical and digital infrastructure across the country.
- The minister has also maintained prudence by keeping the fiscal deficit in check, with an anticipated reduction from 6.4 percent to 5.9 percent.
- Union Budget 2023 provides a balanced platform for the Indian economy as it catalyses the adoption of newer technologies like green energy, and promotes digital infrastructure, even as it increases allocation to physical infrastructure.
Budget 2023 Analysis Live: Tax deduction
- Experts said the returns on the investment in listed bonds are likely to be impacted in the coming days after the Union Budget 2023 was presented.
- In the Finance Bill 2023, the government announced the omission of clause (ix) under section 193 of the Income Tax Act, which provides an exemption from TDS on interest payments on listed bonds.
- Now, all bondholders have to pay TDS on their returns, which will reduce their returns.
Budget 2023 Analysis Live: CGST
- The Government has decriminalised three provisions of the Central Goods and Service Tax (CGST) Act, 2017.
- The 2023 Finance Bill has also raised the monetary threshold for launching prosecution against people violating provisions of the CGST Act to Rs 2 crore from Rs 1 crore.
Budget 2023 Analysis Live: Cement, steel industry
- The cement and steel sectors have clearly gained from the Rs 10 trillion kitty marked for infrastructure in this year's budget.
- Analysts noted that PMAY will help generate demand for housing projects, and thus will be positive for all cement companies.
- Metals to gain from last mile focus and clean energy announcements
Budget 2023 Analysis Live: Capex push
- The government proposed to increase capital expenditure by 33% to Rs 10 lakh crore for FY24 to drive rail, road, defence, housing, water and metro projects.
- Industry experts said the higher capex allocation will increase order inflows in sectors such as power transmission and distribution, water, railways and roads.
Budget 2023 Analysis Live: Real Estate
- The allocation for the Pradhan Mantri Awas Yojana (PMAY), has been increased by 66% to Rs 79,000 crore.
- Experts said that the 66 percent increase in outlay toward PMAY to Rs 79,000 crore will directly impact the development of affordable housing and pare the housing gap that the country is currently facing.
- An Urban Infrastructure Development Fund (UIDF) will be set up to ramp up infrastructure in tier-2 and tier-3 cities with an annual allocation of Rs 10,000 crore.
Budget 2023 Analysis Live: RBI rate hike
- The budget proposals are likely to help stop the interest rate hikes by the Reserve Bank of India that have been raising your EMIs since last year.
- Finance Minister Nirmala Sitharaman met her deficit target for the current fiscal year and announced a lower target for the next year.
Budget 2023 Analysis Live: National Monetisation Pipeline
- Ahead of the Budget, experts had said that the government may miss FY23's target of raising Rs 1.6 lakh crore by a huge margin but were hopeful of an update from the Finance Minister on Feb 1.
- The Centre had met its NMP target in its first year in 2021-22.
- The plan was aimed at monetising operational assets by luring private sector investment in these projects once the execution risk of projects is reduced.
- Industry experts believe that the government has struggled to ramp up the execution of the monetisation plan and get the private sector enthused about it.
Budget 2023 Analysis Live: Real Estate sector
- FM recognizes the need to increase investment for the growth of affordable housing in the country.
- FM announced that the outlay for the PM Awas Yojana has been enhanced by 66 percent to over Rs. 79,000 crore, which is a welcome move given the significant backward and forward linkages real estate and construction in particular have with the rest of the economy.
- Capital gains exemption available to individuals and HUFs on transfer of residential assets or any other long-term capital assets has now been capped at Rs. 10 crore.
- This may adversely impact recycling of high-value assets.
Budget 2023 Analysis Live: Taxes
- The simplified tax regime (STR) gave an option to individuals and HUFs to pay taxes at reduced rates, at the cost of letting go of certain exemptions and deductions otherwise available under the old tax regime, including the standard deduction to salaried taxpayers.
- The budget has proposed to change the tax structure in the STR by reducing the number of slabs from six to five and increasing the basic tax exemption threshold from Rs 2.5 lakh to Rs 3 lakh.
Budget 2023 Analysis Live: Personal Finance
- Budget proposals acknowledged that many low-paid employees may not have a Permanent Account Number (PAN), which resulted in tax being deducted at the maximum marginal rate in their cases, resulting in hardship.
- The Budget has proposed that in case of failure to furnish PAN, tax will be deducted at the rate of 20% as is the practice in non-PAN cases, instead of at the maximum marginal rate.
Budget 2023 Analysis Live: Banking sector
- Experts believe that Banks are likely to increase interest rates on Fixed Deposits (FD) because of impending competition from a new savings scheme announced in Budget 2023 that offers an annual rate of 7.5%.
- Other than the new scheme, experts also said that banks may see competition for deposits in the coming months from the existing Senior Citizen Savings Scheme and Monthly Income Account Scheme that saw an enhancement in deposit limits from Budget 2023.
Budget 2023 Analysis Live: Automobile sector
- As per the Budget document released on February 1, the subsidy outlay under the FAME scheme for fiscal 2023-24 is earmarked at Rs 5,172 crore, accounting for 85% of the total Budget allocation of Rs 6,145 crore for the Ministry of Heavy Industries.
- However, the Society of Manufacturers of Electric Vehicles (SMEV), believes that subsidies offered in this year's Budget is unlikely to make a huge difference to the EV industry as the allocated amount for FY24 doesn’t add any incremental value to the overall outlay made by the government when the FAME 2 subsidy was announced for a five-year period ending in FY24.
Budget 2023 Analysis Live: Energy Sector
- The Rs 35,000 crore earmarked in this year's Budget towards energy transition and security would be primarily used to fund retrofitting of refineries and other units to meet emission norms, the finance ministry said on January 4.
Budget 2023 Analysis Live: Sustained focus on infrastructure will boost steel demand
- Capex increased for infrastructure development to Rs 10 lakh crore in 2023 Budget along with capital outlay of Rs 2 lakh crore for modernising, expanding Railways.
- Infrastructure, building and construction sectors together account for nearly 60% of end-use steel consumption share in domestic market.
- Hence, sustained focus on infra projects will ensure sustained long-term growth in steel demand too, said CareEdge Ratings. It will help both the alloy and non-alloy steel producers.
Good morning and welcome to Moneycontrol's analysis of the Union Budget 2023.
